Question 40

A put is in-the-money if

a. its strike price equals the stock price.

b. its strike price is greater than the stock price.

c. its strike price is less than the stock price.

d. it is guaranteed by the OCC.

4 points

Question 41

Mutual funds must register with the Securities and Exchange Commission because of the

a. Investment Company Act of 1940.

b. Mutual Fund Omnibus Resolution of 1966.

c. NASDAQ Commission on Investment Pools.

d. 1933 and 1934 Securities Acts.

4 points

Question 42

Laws governing the sale of mutual funds within a state are

a. blue moon laws.

b. blue ocean laws.

c. blue book laws.

d. blue sky laws.

4 points

Question 43

A no-load fund

a. generates tax-free returns.

b. has no sales commission.

c. has an expense ratio of zero.

d. has no management fee.

4 points

Question 44

The effective fee on a fund with a 6% front-end load is

a. 5.67%

b. 6.38%

c. 7.88%

d. 9.4%

4 points

Question 45

A back-end load is also called a

a. 12b-1 fee.

b. nominal expense charge.

c. superannuity.

d. contingent deferred sales charge.